Safaricom and PayPal have announced an enhanced partnership aimed at streamlining money transfers between M-PESA and PayPal, enabling millions of Kenyans to better access global e-commerce and digital services.
The collaboration, first launched in 2018, allows users to seamlessly move funds between their M-PESA wallets and PayPal accounts – enabling local freelancers, SMEs, and online shoppers to participate in the global digital economy more easily.
Paypal has partnered with M-pesa to offer more seamless transactions between the two platforms. Could this be a window for Crypto Payments in Kenya?https://t.co/rxDl8HxPZU
— CryptoLadyAfrica (@CryptoLadyAfric) April 9, 2018
With this latest update, the two companies aim to simplify onboarding and improve transaction flows, making it faster and more convenient for Kenyan users to send and receive cross-border payments.
Key benefits of the integration include:
Faster Withdrawals and Top-Ups: Users can move funds between PayPal and M-PESA in just a few steps.
Improved Access to Global Markets: Kenyan entrepreneurs, creatives, and gig workers can now more easily get paid by international clients.
Financial Inclusion: The integration bridges the gap between mobile money and global digital finance, expanding access to underserved users.
Peter Ndegwa, CEO of Safaricom, said the partnership aligns with the company’s mission to “transform lives by connecting customers to opportunities.”
[TECH] Fintech Giant, PayPal, Could Soon Allow You to Trade Crypto Directly, and its Established African Partnerships are Key: Fintech giant, PayPal, is apparently in the process of rolling out direct sales .. https://t.co/hLqaoFtyZJ via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) June 24, 2020
The move is particularly significant in a country where mobile money plays a dominant role in financial services. By linking M-PESA to one of the world’s largest online payment systems, this collaboration strengthens Kenya’s position in the global digital economy.
STATISTICS | Mobile Money Agents in Kenya Transacted 53% of Kenya’s GDP in 2024, Says Central Bank of Kenya (CBK)
M-PESA continues to dominate Kenya’s mobile money market, commanding a 92.3% market share. https://t.co/1ySvxQQBB6 @CBKKenya pic.twitter.com/JDOdrhI6zk
— BitKE (@BitcoinKE) March 14, 2025
Expanding Merchant Access to Global Crypto Markets
As detailed by BitKE, PayPal recently rolled out its “Pay with Crypto” platform, opening the door for U.S. merchants to accept payments in over 100 cryptocurrencies – including Bitcoin, Ethereum, USDT, XRP, BNB, Solana, and USDC – via major wallets like Coinbase, MetaMask, Binance, Kraken, and Phantom.
Once customers pay in crypto, funds are instantly converted to PayPal’s U.S. dollar–backed stablecoin, PYUSD, which earns 4% annually. The introductory transaction fee is just 0.99%, increasing to 1.5% after the first year – offering up to 90% cost savings over traditional international card fees.
The PYUSD stablecoin by PayPal is yet another significant aspect of the company in light of this enhanced partnership.
Launched in August 2023, PYUSD is issued by Paxos Trust as an ERC‑20 token on Ethereum and on Solana (SPL), fully backed by U.S. dollar deposits, Treasury bills, and cash equivalents – with monthly audit attestations.
LAUNCH | PayPal Launches Dollar-Backed Stablecoin, PayPal USD ( $PYUSD ), on the Ethereum Blockchain
As an ERC-20 token issued on the Ethereum blockchain, PayPal USD will be available to an already large and growing community of external developers, wallets and web3… pic.twitter.com/j6tE4xWSkT
— BitKE (@BitcoinKE) August 8, 2023
By mid‑2025, PYUSD’s market cap surpassed $1 billion, doubling since the start of the year [2025]. Its use spans PayPal’s native platforms and integrations into third-party wallets and Web3 applications – boosting both consumer and merchant adoption.
MILESTONE | @PayPal‘s $PYUSD Stablecoin Surpasses $1 Billion Market Capitalization – Doubling Since Start of 2025
The renewed ascent in 2025 appears less dependent on ecosystem incentives and more on strategic growth initiatives from PayPal and issuerhttps://t.co/Xc9NbIMVid pic.twitter.com/LATXiSFS3a
— BitKE (@BitcoinKE) June 12, 2025
What This Means for Kenyan Users
Kenyan businesses and freelancers using M‑PESA and PayPal can now tap into global e-commerce, supported by PayPal’s crypto infrastructure.
As the PYUSD stablecoin becomes more widely adopted, holding funds in it could earn interest and facilitate seamless cross-border transfers.
The integration of crypto payments and stablecoins further enhances financial inclusion – enabling faster, cheaper, and more accessible international transactions.
FINTECH AFRICA | Why Use PayPal in the Age of Crypto? Frustrated Users Propose African Alternatives
Awidely shared post by Kenyan fintech expert, Robert Kingori, has struck a nerve with many African users who feel increasingly sidelined by @PayPal‘s new policies.
One of the… pic.twitter.com/WBOZIMLjFy
— BitKE (@BitcoinKE) March 21, 2025
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